Quick Definition

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of values.

Formula

Examples

• 1In stock market analysis, a higher standard deviation indicates a higher volatility of stock prices.
• 2In portfolio management, comparing the standard deviations of different assets helps in assessing risk.
• 3In mutual fund performance, funds with lower standard deviations are considered less risky compared to those with higher values.
• 4In personal finance, understanding the standard deviation of investment returns can help individuals adjust their risk tolerance.

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